Consumer Spending Continues to Grow at 2.2%

According to the Bureau of Economic Analysis, real consumer spending in January 2014 was $10,853 billion real dollars (seasonally adjusted at an annual rate). As is the case almost every month, real consumer spending hit a new all-time high in January. Spending in January 2014 was 2.2% more than it was in January 2013. Real consumer spending has grown at this rate in three of the last four months. And, this is the fastest rate of month-over-month growth since September 2012.

This is the eighth time in nine months that the annual rate of change has been 2.0%. However, the historical average annual rate of growth is 3.3%. So, spending growth is still running quite a bit below normal. In the next couple of months, the annual rate of change in spending may move a few ticks higher. But, with annual growth in incomes relatively flat, it is likely that real consumer spending will remain at a constant rate of growth in 2014.